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ExtraTorrent.cc > Articles > RIAA: The Curve is Going Back Up

RIAA: The Curve is Going Back Up

RIAA: The Curve is Going Back Up

Added: Tuesday, March 23rd, 2010
Category: Recent Headlines Involving File Sharing > Current Events
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
Recording Industry Association of America says they are now expecting to reclaim all their profits that were lost since 1999 in the next ten years. The most profits are supposed to be coming from music subscribers connected with ISP accounts or portable players. That is how their new business model should work.


Mitch Bainwol, permanent CEO and chairman of RIAA is rather optimistic these days. He says he believes that the reason for the record industry to be at the low point is the process of transition to a digital music world that it’s now experiencing, and the first consequence of that transition was the birth of Napster in 1999, which deprived the industry of much of its revenues. However, he expects that all those profits that were lost since then to be got back in the next 10 years.

Bainwol is quite sure that the process looks like the twenty-year ‘V’ curve. Which means that if in 1999 the industry was worth around $15 billion, and now, in approximately 10 years, it is worth twice less, then it all happened only because the industry was made up mostly of physical, but not digital units. With the form changing, the world is going to watch that curve going back up.

How would that work out? Probably, by deriving revenue from a diverse range of digital means – subscription, digital downloads and so on. The most important source of profit for him is considered to be subscription services, as the central part of the future business model.

That seems to be the best deal ever – to receive the possibility to get any music you like for the price not exceeding that of a couple of hamburgers. Mitch Bainwol expects this deal to amaze the new generation of users and strongly believes that this model will work just great. However, the success will depend on the readiness of music industry to offer its consumers what they want – exactly, the range of content they want, the time and the means of getting it that they want. Reasonable price will be important as well. The industry has already had some sad experience of ignoring the consumers’ demands, so it would be great for them to surmise it in the near future.

That is only Bainwol’s point of view, though. For me, I can’t see any reason to believe that it’s the low point of the industry right now in some imaginative curve, or whatever it is. I think the drop happened due to RIAA’s “wise” politics of suing several tens of thousand of its customers and constantly threatening the rest of them. Not so thrilling, but looks more like truth.

March 23rd, 2010

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Date:  Tuesday, March 23rd, 2010

Comments (4) (please add your comment »)

posted by (2010-03-23 23:48:32)
capnmorgan5150 avatarHow about telling the artists to make albums that have more than 2 good songs on it, that would be a good start. When you rip people off and they get the chance to do the same to you, don't be surprised when it happens. Stupid record companies. They'll never get another dime from me again, lol!

posted by (2010-03-24 05:32:49)
4JIMi2sTEXAS0 avatarlmfao im with morgan on that one, thats true maybe the punk a$$ artists should make album worth buying, i cant tell u how much money ive spent on CD's just because i liked 1 song on it... either way these SOB's are millionaires, their pockets arent exactly hurting for cash so what the hell they whining for ??? ... lol and my avatar says it all !!

posted by (2010-03-24 08:51:31)
conmac863 avatarOf course had they decided 10 years ago to look at what Napster was doing and how it was doing it and spent some R&D money on developing a delivery system similar to it instead of spending millions on suing people there may have been a 2 year curve instead of the imaginary, wishful thinking, if I say it will come true, 20 year curve.

posted by (2010-03-24 11:52:38)
kingtiger01 avatar10 year curve? how about Infinity Curve. Theyve screwed the Consumer too much, and they think they will get back that kind of money they got in the early 1990's and prior. The modern age sees the recording industry for what it is now. A collection of 2bit 2timers, that encourages there Artists to make 1-2 songs to sell a album of 10 Crappy ones. for a profit margin of 300%...

Whats hurt them over the last 11 years is simply this 'Song Selection', we the Consumer can say 'i dont want those Crappy 10 songs ill never listen to. i just want these two. and i can have them nearly instantly with the power of the Internet. i dont have to wait in line for 2 hours at a store. Or do i have to wade through miles of other Crappy CD's'

Online Delivery methods coupled with Song SELECTION is whats killed them, They cant see people arent going to buy a Carton of Eggs with 2 good eggs and 10 rubber ones.

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